Critical Analysis: China Chemical (OTCMKTS:CHCC) & Eastman Chemical (NYSE:EMN)

Eastman Chemical (NYSE:EMN) and China Chemical (OTCMKTS:CHCC) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Eastman Chemical and China Chemical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastman Chemical	4.99%	9.46%	3.78%
China Chemical	N/A	N/A	N/A

Institutional and Insider Ownership

83.7% of Eastman Chemical shares are owned by institutional investors. 2.6% of Eastman Chemical shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Eastman Chemical and China Chemical”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastman Chemical	$8.75 billion	0.96	$474.00 million	$3.84	19.06
China Chemical	N/A	N/A	N/A	N/A	N/A

Eastman Chemical has higher revenue and earnings than China Chemical.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eastman Chemical and China Chemical, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastman Chemical	0	7	7	0	2.50
China Chemical	0	0	0	0	0.00

Eastman Chemical presently has a consensus price target of $79.17, suggesting a potential upside of 8.17%. Given Eastman Chemical’s stronger consensus rating and higher possible upside, equities analysts plainly believe Eastman Chemical is more favorable than China Chemical.

Summary

Eastman Chemical beats China Chemical on 9 of the 9 factors compared between the two stocks.

About Eastman Chemical

Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company's Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, cellulose esters, polyvinyl butyral sheets, and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables markets. The company's Chemical Intermediates segment offers olefin and acetyl derivatives, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. The company was founded in 1920 and is headquartered in Kingsport, Tennessee.

About China Chemical

China Chemical Corp. engages in the design, development, manufacture, and commercialization of organic chemical materials primarily in the People’s Republic of China. It offers maleic anhydride (MAH), an organic chemical used primarily in the production of unsaturated polyester and polyurethane resins; phthalic anhydride (PA), an organic chemical used primarily in the production of PVC for packaging, films, magnetic tapes, tires, pipes, hoses, containers, and other everyday products; and byproducts of MAH and PA. The company was founded in 2008 and is based in Zibo, the People’s Republic of China.